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ERP Sys
Benefit
By Group F

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Information Tec

Who are we?

Prashasti Chakma
ID: 15010016

William Masterson Shah

ID: 15010021

ERP System and Its Benefit - Information

Technology for Business Value

Md. Nahid Rahman

ID: 15010028

Wahidul Alam
ID: 15010032

What We Will Discuss

ERP Systems Defined
How ERP System Works
Evolution of ERP System
Advantage & Disadvantage of
ERP System

ERP System Architecture

Commercial ERP Systems

Extended ERP Systems
Intangible Business Benefits in IT
and ERP Projects

Enterprise System Benefit

Framework

Conclusion

ERP System and Its Benefit - Information

Technology for Business Value

Objective
To Know about the ERP system and its historical perspective. Also
the area of use of this system and Benefits we get from it.

ERP System and Its Benefit - Information

Technology for Business Value

Methodology
Primary Sources: The primary data was collected from users of ERP
systems.

Secondary Sources: Different websites and journals related to the

information and technologies and ERP Systems.

ERP System and Its Benefit - Information

Technology for Business Value

References

1. Rashid, M.A., Hossain, L. And Patrick, J.D. (2002) The Evolution

Of ERP Systems: A Historical Perspective, , PP. 116.

2. Mishra, A. (2008) Achieving Business Benefit From ERP System,

3.

IGI Global, , Pp. 217. DOI: DOI: 10.4018/978-1-59904-5313.Ch005.

ERP Webopedia
System and Its
Benefit - Information
, Available
At: www.webopedia.com
Technology for Business Value

April 2016)

(Accessed: 14

ERP Definition
Enterprise resource planning (ERP) is business process
management software that allows an organization to use a system of
integrated applications to manage the business and automate many
back office functions related to technology, services and human
resources.

ERP System and Its Benefit - Information

Technology for Business Value

How ERP
System
works!

ERP System and Its Benefit - Information

Technology for Business Value

Evolution of ERP Systems

During the 1960s most organizations designed, developed and implemented
centralized computing systems, mostly automating their inventory control systems
using inventory control packages (IC).

1970s which involved mainly planning the product or parts requirements according to
the master production schedule.

Following this route new software systems called manufacturing resources planning
(MRP ii) were introduced in the 1980s with an emphasis on optimizing manufacturing
processes by synchronizing the materials with production requirements.
ERP System and Its Benefit - Information
Technology for Business Value

Evolution of ERP Systems [contd]

ERP systems first appeared in the late 1980s and the beginning of the
1990s with the power of enterprise-wide inter-functional coordination and
integration.

During the 1990s ERP vendors added more modules and functions as
add-ons to the core modules giving birth to the extended ERPs.

ERP System and Its Benefit - Information

Technology for Business Value

Evolution of
ERP Systems

ERP System and Its Benefit - Information

Technology for Business Value

Advantage
of ERP

ERP System and Its Benefit - Information

Technology for Business Value

Disadvantage
of ERP

ERP System and Its Benefit - Information

Technology for Business Value

ERP System
Architecture

Business
Modules

DBMS

Data Flow

Real Time
Action

The Characteristics of ERP

System

Compensating Expatriates Human Resource

Management

Inratanet &
Internet
Enabled

ERP System
Architecture
Three Tier ERP System

ERP System and Its Benefit - Information

Technology for Business Value

ERP System
Architecture
Modules of a successful
ERP System

Accounting management
Financial management
Manufacturing management
Production management
Transportation management
Sales & distribution management
Human resources management
Supply chain management
Customer relationship management
E-Business

ERP System and Its Benefit - Information

Technology for Business Value

Some modules
of SAP ERP
System

ERP System and Its Benefit - Information

Technology for Business Value

Commercial ERP
Systems
Some Popular ERP Software:

mySAP
OneWorld
Oracle Applications
People Soft8
Baan ERP

ERP System and Its Benefit - Information

Technology for Business Value

Extended
ERP System

ERP System and Its Benefit - Information

Technology for Business Value

Intangible Business Benefit in IT and ERP Projects

Internal Improvement: This includes processes, workflow, and information
access.

Customer Service: This ensures quality, delivery, and support.

Foresight: This is vision regarding markets, products, and acquisitions in
the future.

Adaptability: This is the ability to adapt change in rapidly changing industry.

ERP System and Its Benefit - Information
Technology for Business Value

ERP System Benefit Framework

There are major 5 dimensions where we can get benefit of ERP System.
These are: Operation, Managerial, Strategic, Infrastructure and
Organizational.

ERP System and Its Benefit - Information

Technology for Business Value

Cycle Time Reduction

Cost Reduction

OPERATIONAL
BENEFIT

Productivity Improvement
Quality Improvement
Customer Service Improvement

ERP System and Its Benefit - Information

Technology for Business Value

Better Resource
Management

MANAGERIAL
BENEFIT

Improved Decision Making

& Planning
Performance Improvement
Quality Improvement

ERP System and Its Benefit - Information

Technology for Business Value

Support Business Growth

Support Business Alliance
Building Business Innovation

STRATEGIC
BENEFIT

Building Cost Leadership

Generating Product Differentiation
Enabling Worldwide Expansion
Enabling E-Commerce
Generating or Sustaining Competitiveness

ERP System and Its Benefit - Information

Technology for Business Value

Building Business
Flexibility

INFRASTRUCTURE
BENEFIT

IT Cost Reduction
Increase IT Infrastructure
Capability
Quality Improvement

ERP System and Its Benefit - Information

Technology for Business Value

Change Work Pattern with Shifted Focus

Facilitating Business Learning and Broaden
Employee Skills

ORGANIZATIONAL
BENEFIT

Empowerment
Building Common Visions
Shifting Work Focus
Increased Employee Morals and Satisfaction

ERP System and Its Benefit - Information

Technology for Business Value

Conclusion
Organizations can achieve a number of tangible and intangible benefits due to successful
implementation of ERP systems. These benefits can be derived globally, and in the context
of globalization it is important to understand an organizations managerial people and
shareholders as well.

ERP System and Its Benefit - Information

Technology for Business Value

ANY QUESTION

ERP System and Its Benefit - Information

Technology for Business Value